CSX’s third quarter landed slightly better than Wall Street expected on adjusted earnings, even as revenue edged 1% lower year over year. The Jacksonville-based railroad said adjusted EPS was $0.44 on $3.59 billion of revenue, with intermodal growth and firmer merchandise pricing helping counter softer export coal. New CEO Steve Angel framed the quarter as a reset built on improving service and network speed. For carriers and brokers, the takeaway is straightforward: rail service is getting faster and more reliable in the East, and that can tug some long-haul freight off the highway while lifting drayage and middle-mile opportunities around key hubs.
What moved the needle: intermodal. CSX pointed to volume gains in its containers business and better price across merchandise carloads as the offsets to coal, which remains a drag. The company also reiterated 2025 capital spending of about $2.5 billion, positioning for capacity and resiliency improvements that matter to shippers timing mode shifts. For truckload fleets, a steadier, faster East Coast rail option can pressure long-haul rates on corridors where door-to-door intermodal time is now competitive.
Service metrics are the quiet story behind the print. CSX reported its fastest train speeds since 2021 and on‑time performance in the high‑80s, aided by the wrap‑up of two major projects — the Howard Street Tunnel clearance work in Baltimore and Blue Ridge Subdivision upgrades. Faster turns and fewer bottlenecks reduce interchange friction and cut variability for customers, which is exactly what shippers need to push more freight into rail-supported routing guides this peak season. Expect incremental demand for drayage capacity around Mid‑Atlantic and Southeast ramps as double‑stack access expands.
Context from the broader freight mix underscores the point. J.B. Hunt — the bellwether for domestic intermodal — said Eastern network loads rose 6% in Q3 while transcontinental volumes fell 6%. That East‑heavy tilt aligns with CSX’s service gains and suggests more port‑centric inland moves for the rest of the year. For trucking, that can mean tighter drayage capacity at East Coast ports, steadier dedicated activity tied to rail‑served DCs, and additional brokerage opportunities on first‑ and final‑mile legs.
Competitive dynamics are shifting too. Angel told investors he’s focused on making CSX the top-performing railroad but is open to strategic moves that add shareholder value. Meanwhile, speculation around Union Pacific’s proposed $85 billion acquisition of Norfolk Southern continues to hover over the East‑West map. Even without a deal, CSX has been extending reach through service agreements — steps that matter to shippers knitting together cross‑country coverage and to carriers chasing consistent dray lanes.
Why this matters now for trucking:
– Lane competition: Improving rail schedules erode highway advantages on select 700–1,200‑mile corridors, increasing price pressure for spot truckload while strengthening contract intermodal options.
– Drayage demand: Better train velocity and ramp reliability lift turns for containers, often tightening local driver supply around Atlanta, Charlotte, Jacksonville, Baltimore and other CSX nodes.
– Peak planning: With service stabilized and port flows front‑loaded, brokers should anticipate short‑notice pulls from DCs tied to rail arrivals rather than purely ocean ETA‑driven schedules. JB Hunt’s commentary points to inland peak still unfolding, not canceled.
Bottom line: CSX’s quarter wasn’t a demand boom, but it was an operations story — and operations win mode shifts. If the railroad sustains higher train speeds and on‑time performance while investing in capacity, expect intermodal’s share to grind higher in the East. Truckers should lean into drayage and contractually tied shuttle work around ramps, while brokers position for tighter, time‑definite middle‑mile moves synced to faster, more predictable rail service.
Sources: FreightWaves, CSX, Reuters, AP News, J.B. Hunt, Transport Topics, Investing.com
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